Hospitality is all about offering warmth to someone who looks for help at a strange or unfriendly place. It refers to the process of receiving and entertaining a guest with goodwill. Hospitality in the commercial context refers to the activity of hotels, restaurants, catering, inn, resorts or clubs who make a vocation of treating tourists.

Helped With unique efforts by government and all other stakeholders, including hotel owners, resort managers, tour and travel operators and employees who work in the sector, Indian hospitality industry has gained a level of acceptance world over. It has yet to go miles for recognition as a world leader of hospitality. Many take Indian hospitality service not for its quality of service but India being a cheap destination for leisure tourism.

With unlimited tourism and untapped business prospects, in the coming years Indian hospitality is seeing green pastures of growth. Availability of qualified human resources and untapped geographical resources give great prospects to the hospitality industry. The number of tourists coming to India is growing year after year. Likewise, internal tourism is another area with great potentials.

The hospitality industry is a 3.5 trillion dollar service sector within the global economy. It is an umbrella term for a broad variety of service industries including, but not limited to, hotels, food service, casinos, and tourism. The hospitality industry is very diverse and global. The industry is cyclical; dictated by the fluctuations that occur with an economy every year. Today hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016. Many international hotels including Sheraton, Hyatt, Radisson, Meridian, Four Seasons Regent, and Marriott International are already established in the Indian markets and are still expanding. Nowadays the travel and tourism industry is also included in hospitality sector. The boom in travel and tourism has led to the further development of hospitality industry.

The Indian hotel industry witnessed unprecedented growth during the Indian Financial Years (FY) 2003-08 due to the booming economy, resulting in an increase in business and leisure travel and visible growth in inbound tourism. The increase in business travel in the country during this phase can be attributed to rising trade flows and the entry of an increasing number of international players into the country. According to the Ministry of Tourism, during this period foreign tourist arrivals (FTAs) to India grew at an annual rate of 14.5% as the country emerged as an attractive tourist destination. Attracted by India’s rapidly growing hospitality industry, several international hotel chains, including Hilton, Marriott, Starwood, Shangri-La, Carlson, InterContinental, Accor and Hyatt strengthened their market presence in the country. This led to a significant increment in revenue (room rentals and food and beverages receipts), with the industry turnover tripling from EUR 949m in FY03 to EUR 2.73b in FY08 (per Annual review of the hotel industry, CRIS INFAC, September 200

Over the last few years, business travel to smaller cities such as Bhubaneswar, Pune, Jaipur, Mangalore and Kochi has increased as IT and IT enabled service (ITES) companies have expanded operations. India has also become a preferred tourist destination with a number of smaller cities such as Jaipur, Udaipur, Thiruvananthapuram and Kochi witnessing increased foreign arrivals..

Existing hotels in these cities are not adequately equipped to meet the growing demand and several hotel chains plan to develop properties. Most of these properties are expected to be in the budget segment, which has witnessed robust growth in India over the last few years, driven by the growth in domestic travel. Both domestic and international hotel chains have lucrative plans

for this segment.

In 2008, the global economic slowdown had a significant adverse impact on the Indian hospitality industry as rising job insecurity levels significantly reduced leisure travel. Business travel was also on a downwards trend as companies trimmed their travel budgets, resulting in a drop in occupancy across most hotels in the country.

Revenues hit hard by downturn

The average occupancy rate for the 10 major cities in India has declined from 70.6% in FY08 to 62.3% in FY09. This resulted in a RevPAR decrease from EUR 94.40 in FY08 to EUR 83.90 in FY09, even though the average room rates (ARR) marginally improved from EUR 133.30 in FY08 to EUR 133.60 in FY09. Consequently, the industry witnessed an annual decline in revenues (of 4%), to EUR 2.62b in FY09, for the first time since FY02.

Increased supply to hamper recovery

Despite the rampant pressures of the economic slowdown, the situation in the Indian hotel sector has improved over the last couple of months. This is primarily reflected by the improvement in tourism metrics. For example, according to Ministry of Tourism data, the decline in FTAs during the January to October 2009 phase was 7%, as against 13.7% in the January to March 2009 period. The improved market scenario and the rise in FTAs are expected to improve occupancy rates in 2010. Once the hotel supply problem begins to be rectified, lower rates are likely, due to increased competition, pulling down RevPAR further.

Real estate developers placed their hotel projects on hold due to the liquidity crunch and some international hotel chains deferred their expansion plans. The anticipated increase in supply never materialized, further extenuating the demand-supply gap in the industry going forward. There were only 129,982 hotel rooms in India as of FY09, of which 25% and 29% are in the premium and mid-market segments respectively. This number is very low compared with other large countries: the US had 4.6m hotel rooms at the end of 2008, while China had 1.45m guest rooms in 2006 (per American Hotel & Lodging Association).

Investment considerations

The Reserve Bank of India recently excluded hotels run by developers from the scope of commercial real estate exposure for the purpose of bank lending. This is expected to ease funding for hotel projects and boost the revival of delayed projects. International hotel chains are also expected to resume their plans once the global economic situation eases, as the hospitality industry in India is still attractive and offers significant opportunities to these players. Although over 6,200 hotel rooms are expected to be added in the premium segment alone during FY10-11, analysts anticipate that the demand-supply gap will remain intact.

The hotel industry in India continues to appear attractive in the medium term, driven by fundamental growth drivers, including the uptrend in domestic tourism and increasing FTAs. Moreover, the growth of niche tourism, including medical, adventure and rural tourism, augurs well for the growth of the industry in the future.

NEED FOR MARKETING IN THE HOTEL INDUSTRY:

Understand

Drivers of demand

Consumers and customize products

Increase

Volume of transactions (Room occupancy)

Value of transactions (Rate of return)

Demand shift from high season to low season

MARKETING MIX OF HOTEL INDUSTRY:

PRODUCT:

Core service- Rest & Sleep

Basic service- Adding bed, bathroom, towels, desk, dresser, etc.

Expected service- Clean bed, fresh towels, working lamps, etc.

Augmented service- Business services, Free airport pick/drop

Potential service- Bouquets etc.

PRICE:

Budget Hotels

Service Apartments

Technology services

Loyalty points

PLACE – DISTRIBUTION/LOCATION:

Choice of location is most crucial marketing decision

Accessibility & Convenience to the target market

Relies on the interdependence with other industries

Telephone or online reservation

Tour operator

Use of cooperative distribution

PROMOTIONS:

Personal Selling.

Sales Promotion.

Public Relations.

Direct Mail.

Trade Fairs and Exhibitions.

Advertising.

Sponsorship.

PEOPLE:

Provides tangibility & very essential component in delivering the service.

Front office is the nerve center of a hotel property.

Effective communications are paramount in projecting a hospitable image.

Need to have an efficient HR department to monitor employee recruiting and training.

PROCESS:

Reservation

Assignment of room

Prepayment

Initializing account

Arrival and occupancy

Registration

Check in room occupancy

Use of facility

Handling request and complaints

Posting guest charges

Departure and check out

Preparation of statement of accounts

Guest history

Inform hotel kitchen supplies and facilities

Maintain Data Base and Guest Folio Line of Interaction

PHYSICAL EVIDENCE:

External appearance of the premises

Building’s exterior

Design landscaping

Lighting and signage

Internal layout

Atmosphere & ambience

Appearance of staff

INTRODUCTION:

Radisson is a division of Carlson Hospitality Worldwide, a global leader in hospitality services encompassing more than 1,530 hotel, resort, restaurant and cruise ship operations in 80 countries.

Upscale & Luxury Hotels

Radisson continues to expand its presence in key markets in the Americas, Asia Pacific and Europe, the Middle East and Africa, reaching new markets and customers

Radisson Hotels & Resorts, one of the world’s leading, full-service global hotel companies, operates, manages and franchises more than 400 hotels and resorts in 66 countries.Â

Radisson is focused on being the hotel of choice for today’s independent-minded frequent business and leisure travelers who want more control over their hotel experience.

STRATEGIES

SALES AND MARKETING STRATEGIES:

New marketing structure to focus its professionals on brand management, regional marketing and new revenue generating national marketing programs that can also be applied at the regional level.

The sales team has been realigned to target new account development, maintenance and account growth.

Radisson Gold Rewards guest relationship program that works to build long-term guest loyalty and attract new customers to the brand

Look To Book, the industry’s premier loyalty program for travel agents.

A new 19-person division has been created focused on customer relationship management practices through the use of analytics, e-commerce and program management.

INNOVATIVE MARKETING SERVICES:

“Express yourself”: Guests can request stay preferences such as:, room preferences (high/low floor, near an elevator, smoking or no-smoking room or no preference), an automated wake-up call time; airport pick up (where available) and other special requests.

INTRODUCTION

18 International Hotels in the Malaysia,Australia.UK,USA,Sri lanka, Africa.

Taj is recognised as the premier Hospitality provider.

Innovator in dining: – Taj was the first to introduce thai, Italian, and Mexican into the country.

STRATEGY:

Taj group has used the Taj name for all its operations to leverage the brand equity commanded by the name Taj.

Taj brand is playing an increasing role of driving revenues

Taj group plans to add around 12 Hotels in the next 3 years .

Taj facilitates the expansion to other segment by endorsing the sub-brands with their parents’ brand names.

MARKETING STRATEGY

A higher emphasis was placed on the business segment as the profits are higher (this market being less price-sensitive) as compared to the luxury segment.

There was a proliferation of the Taj Presidency hotels not only in new cities, but also smaller towns.

The action plan is more opportunities, adding to and complementing the brand.

INNOVATIVE MARKETING SERVICES:

“STAY A BIT LONGER”- If a customer book 2 nights or 3 with Taj hotels, then they surprise to customer with a complimentary night’s stay at select hotels.

“EARLY BIRD OFFER”- Say at any of Taj properties ranging from modern business hotels to idyllic beach resorts to authentic Rajput palaces, 10 days in advance and avail the Early Bird Rate to enjoy savings of 20% over our Best Available Rate (BAR).

“SUITE SURPRISES” – Book between 1-4 nights in Taj Suites and enjoy a free night’s stay. Luxury at the Taj isn’t only about indulgences, but advantages. Book 1, 2, 3 or 4 nights in our majestic Suites, featuring impeccable interiors and classic style, and enjoy a complimentary night’s stay.

TAJ SAFARIS are wildlife lodges that allow travelers to experience the unparalleled beauty of the Indian jungle amidst luxurious surroundings.

They offer India’s first and only wildlife luxury lodge circuit. Taj Safaris provide guests with the ultimate, interpretive, wild life experience based on a proven sustainable ecotourism model.

TAJ AIR, a luxury private jet operation with state-of-the-art Falcon 2000 aircrafts designed by Dassault Aviation, France; and Taj Yachts, two 3-bedroom luxury yachts which can be used by guests in Mumbai and Kochi, in Kerala.

“BUSINESS EDGE” – At the Taj, business is not just unconventional, but valuable. Alongside the quintessential fusion of business and pleasure, you will also enjoy unbelievable savings and benefits on our traditional hospitality and exceptional service that are sure to leave you pleasantly surprised.Â

REWARD PROGRAMS:

The Taj Inner Circle is the frequent guest programme of Taj Hotels Resorts and Palaces. Besides a bouquet of benefits, as a member you will earn points when you stay with us or stop by for a meal at one of our restaurants at participating Taj Hotels in India and abroad. You will earn points on your eligible spends on room, food and beverage, laundry, telephone and business centre. You can also earn points on your spends at the Taj Khazana boutiques located in select Taj Hotels in India. Redeem your points for room nights, memorable meals, gift certificates redeemable at Taj Khazana, Taj Salon, Jiva Spa, and gifts from a hand-picked selection.

Taj Advantage Plus is the perfect programme for our valued corporate bookers in India and comes power-packed with great earning and redemption opportunities, special benefits and exciting offers. Enrolment to the programme is by invitation only. Log-in for details and the latest updates.

The Taj Alliance Preferred Partner Membership (TAPP Me) Programme has been designed exclusively for our partners in the travel trade in India. Enrolment to the programme is by invitation only. Enter your TAPP Me membership number and password to access the TAPP Me website.

ADDTITIONAL SERVICES:

Health & Fitness facility to its Guests.

Latest cardio vascular machines, strength-training equipment.

Spa also includes steam rooms &sauna, specialized treatment rooms.

swimming pool, Gardens, Waterfall

The beauty saloon of the Taj hotel offers a wide range of beauty and hair treatment for men &women.

Free 24*7 internet access

KEY SUCCESS FACTORS

Technology related:-Used of advance technology in hotel premises.

Manufacturing- related: – High utilization of fixed assets.

– Quality control know-how.

– Serving customer according to their specification.

Distribution-related: – Presence of hotel chain at various places.

– A strong network.

Marketing related: – Breadth of product line and product selection.

– Personalized customer services.

– A well-known and well-respected brand name.

ITC’s hotel division was launched on October 18, 1975, with the opening of its first hotel Chola Sheraton in Chennai.

ITC – Welcomgroup Hotels, Palaces and Resorts, is today one of India’s finest hotel chains, with its distinctive logo of hands folded in the traditional Namaste is widely recognized as the ultimate in Indian hospitality.

Each of the chain’s hotels pays architectural tribute to ancient dynasties, which ruled India from time to time.

The design concept and themes of these dynasties play an important part in their respective style and decor.

MARKETING STRATEGIES:

Joined hands with the Sheraton Corporation to strengthen its international marketing base.

Strategy of benchmarking against international standards

Indian hotel chain, with a heavy emphasis on the great Indian experience (with international standards of luxury)

Fortune brand, which started off as mid-segment brand, is now being re-positioned as a first-class business hotel.

INNOVATIVE MARKETING SERVICES:

LOYALTY PROGRAMMES:

WELCOMAWARD:

WelcomAward has earned the distinction of being India’s premier and most powerful frequent guest programme. The WelcomAward programme recognizes your needs as a business traveler and through its strategic alliances with travel partners, endeavors to build a rewarding relationship with you.

WELCOMLINK:

Welcomlink, India’s most popular lifestyle rewards programme, designed exclusively to recognize and reward our business partners who channelize bookings into ITC-Welcomgroup Hotels.

As a WelcomLink Member, you can earn points for every materialized room night you book at participating hotels. These points can be redeemed for an array of exciting reward from luxury getaways & fine dining to travel privileges, home furnishings, lifestyle apparel and much more, your choice is limitless.

CULINARY BRANDS:

Enjoy a taste of India at ITC-Welcomgroup’s acclaimed signature restaurants such as Bukhara, Peshawri, Kebabs & Kurries, Dum Pukht, Dakshin and more. Experience the subtle flavours of the Western world and the Orient at restaurants like West View, Pan Asian, Shanghai Club and My Humble House. Or spend some cheerful moments with your friends over a drink at Dublin, the authentic Irish pub.

One of the rewards of this membership is the pleasure of dining at ITC- Welcomgroup hotels, a journey that encompasses a wide choice of cuisine from across the globe. As a member you enjoy attractive savings when you dine & entertain with the Culinary plus Card. These include:

20% off when you dine alone or in a group of five and more

20% discount on alcoholic beverages

20% discount at The Gourmet Shop

When travelling, the Culinary Plus Card is an invaluable asset because it offers you and your guests a special discount of 20% on the published room tariff at participating ITC- Welcomgroup hotels.

KEY SUCCESS FACTORS (KSF’S)

Total customer satisfaction

Brand Value

Adequate accounting records in accordance with the provisions of the Companies Act

HOSPITALITY MARKETING: A REMEDY TO PROBLEMS OF HOSPITALITY INDUSTRY

Problems include:

Comparatively more increase in labour costs as compared to productivity.

Customer dissatisfaction due to increase in size and number of rooms as it is claimed to increase registration and other services process time.

Importantly very high competition that induces heavy rate cuts to survive.

Recommendations:

Industry focused on technology and updating their telephone reservation systems.

Businesses also focused to increase assets and forgot the essence of industry, that is, ‘customer oriented service’

Players in hospitality industry realize that hospitality product is different, that is in fact, something intangible that they are selling and as both product and reasons for buying it are different also different so it demands a different marketing strategy, something like hospitality marketing that requires customer centred hospitality need identification, specific segmentation & positioning and ‘the hospitality marketing mix’.

Now focus on customer’s service and satisfaction rather than focusing on their own brand name only.

CONCLUSION:

Hotels should focus on quality and market response has shaped the industry.

They should always try to give something extra than demanded.

Entry of multinationals and Indian hotel chains, reinforces the segment’s untapped business potential.

“Combining unparalleled growth prospects and unlimited business potential, this industry is certainly on the road towards being a key player in the nation’s changing face.”